MIDEAST STOCKS-Qatar extends rebound, Dana Gas down ahead of trial

DUBAI, Sept 20 (Reuters) - Qatar’s stock index extended gains for a second day on Wednesday as local and international funds stepped up buying after a long spell of weakness.

The Doha index broke an 11-day losing streak on Tuesday, though the benchmark index is still down 18.5 percent so far this year.

It has been hurt by the economic and political boycott of Qatar by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.

“The market has realised Qatar is the most undervalued market in the region. It was bound to bounce back,” said a local fund manager, adding that the banking and petrochemical sectors looked the cheapest.

Commercial Bank was the top mover among banks, rising 1.57 percent, followed by Doha Bank, up by 1.45 percent. In Abu Dhabi, Dana Gas was down 1.27 percent with about 52 million shares traded, which accounted for roughly 57 percent of the total volume on the exchange.

A London High Court judge on Tuesday adjourned a trial on Dana Gas and its creditors until Thursday after a UAE injunction issued last Sunday prevented the company from taking part in the proceedings.

The judge said the trial could proceed regardless of whether all parties were present. Shares of Dana had risen 1.3 percent on Tuesday, before the news of the adjournment came.

Dubai’s index fell 0.62 percent, dragged down by Shuaa Capital - the worst performer down 2.5 percent - and Emirates Integrated Telecommunications Company, known as du, which lost 1.8 percent.

The Saudi index was down 0.43 percent.

In Cairo, the index fell 0.25 percent as only six of the top 30 shares made gains.